The verdict in three sentences
For a vertical SaaS led by a domain expert, a technical cofounder is expensive in equity (20 to 35%) and in time (6 to 12 months of searching on average). An agency costs EUR 45,000 to 90,000 excluding VAT for version 1 but delivers in 3 to 5 months and lets you validate the market before diluting. The best option depends mostly on the expected future valuation and on organising the code handover to an in-house team from day one.
The starting case: a SaaS for land surveying firms
Sophie, a chartered land surveyor for 15 years now based in Berlin, sees firms managing boundary and subdivision files on spreadsheets and ageing desktop software. She wants a SaaS that centralises files, field appointments, documents and invoicing. Her first market, France, has about 1,900 firms, a narrow but loyal niche, with a target of EUR 120 to 250 a month per firm, and Germany as a second market.
This kind of vertical SaaS wins on domain knowledge, rarely on technical prowess. The question becomes: who writes the code, and at what real price?
The three paths compared
| Criterion | CTO cofounder | Fixed-price agency | Freelancers |
|---|---|---|---|
| Cash cost of V1 | EUR 0 to 15,000 (tools, cloud) | EUR 45,000 to 90,000 | EUR 30,000 to 70,000 |
| Equity cost | 20 to 35% of shares | 0% | 0% |
| Time before starting | 6 to 12 months of searching | 2 to 4 weeks | 2 to 6 weeks |
| V1 delivery time | 4 to 8 months (often part-time) | 3 to 5 months | 4 to 7 months |
| Reference rate | Deferred salary, stock options | Fixed price per lot | EUR 450 to 650 per day |
| Main risk | Partner conflict | Vendor dependency | Coordination and departures |
| Investor credibility | Very strong | Medium, to complete with a CTO | Low to medium |
Equity cost can be calculated. If the company is worth EUR 3 million at Series A, 25% given away is EUR 750,000. If it is worth EUR 10 million at exit, that is EUR 2.5 million. An agency at EUR 70,000 looks expensive on day 1 and cheap on day 1,500.
The real cost of the freelance path
Freelancers at EUR 450 to 650 a day look attractive on paper. A V1 takes 80 to 120 development days, so EUR 36,000 to 78,000, plus the founder's coordination time, often 10 to 15 hours a week. Without a technical profile to arbitrate, architecture choices are made ad hoc and later takeover is costly.
| Hidden cost | Freelancers | Agency |
|---|---|---|
| Project manager | Carried by the founder | Included |
| QA and testing | Often missing | Included in the fixed price |
| Technical documentation | Rare | Contractual deliverable |
| Replacing a departure | 3 to 6 weeks lost | Handled by the agency |
| Post-delivery warranty | Variable | 1 to 3 months standard |
| Hosting and security | To organise | Configured |
Prepare the code handover from day one
The legitimate fear with an agency is dependency. It is handled by contract and method, not by principle.
- Ownership: Git repository, cloud accounts and domain names in the company's name from the first sprint, full assignment of rights.
- Standard stack: TypeScript, Next.js or equivalent, PostgreSQL. A common stack is easy to hire for, an exotic framework is not.
- Documentation: setup README, data schema, recorded architecture decisions.
- Knowledge transfer: 10 to 20 days included to train the future CTO or first in-house developer, pairing on real tasks.
- Exit clause: 30 days' notice, handover of all access, no penalty.
A hybrid path works well: agency for V1, then hire a CTO with 3 to 8% in stock options instead of 25%, on a product that already has customers.
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Mini case study
Sophie weighs a CTO cofounder at 25% against an agency at EUR 65,000. With the agency, she launches in 4 months and signs 40 firms at EUR 180 a month after a year, EUR 86,400 ARR. She then raises EUR 600,000 at a EUR 3 million valuation and hires a CTO with 5% in options.
Comparison: 25% given to a cofounder is worth EUR 750,000 at that valuation, versus EUR 65,000 paid to the agency plus 5% to the CTO, EUR 150,000 in total. The gap is about EUR 535,000 in favour of the hybrid path, provided V1 finds its customers.
FAQ
How much does a vertical SaaS V1 cost through an agency?
Between EUR 45,000 and 90,000 excluding VAT in 2026 for a B2B product with account management, one or two business features and billing. Typical delivery is 3 to 5 months.
How much equity should a technical cofounder get?
The observed range is 20 to 35% for a cofounder who joins early and commits full-time. A CTO hired after the first customers often accepts 3 to 8% in options.
Are freelancers cheaper than an agency?
At EUR 450 to 650 a day, the gross cost is often 15 to 25% lower. Hidden costs (coordination, testing, replacements) frequently erase that gap.
Can an in-house team take over agency code?
Yes, if the stack is standard, documentation is delivered and knowledge transfer is planned. Allow 10 to 20 days of pairing for an experienced developer.
Do investors accept a SaaS without a CTO partner?
At pre-seed, increasingly so, if traction is real. At Series A, they expect a technical lead in place, hired or partner.
Let's scope your project. We price your vertical SaaS V1 at EUR 45,000 to 90,000, with knowledge transfer and code ownership included, delivered in 3 to 5 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
